It said its consolidated group EBITDA grew 55% in 2018, to over RON65 million, due to the integration of new businesses, development of its product portfolio and investments in production lines. TeraPlast launched investment projects through state aid schemes totaling EUR15 million.
“Both the Steel and Plastics divisions registered double-digit growth. In 2018 we completed the investment in the rigid PVC recycling unit, which places the company at no.1 in Romania and among the top 10 rigid PVC recyclers in Europe, by processing capacity. Through state-aid projects, with a total value of EUR15 million, we set the ground of the mid-term development for the Group,” said Ioana Birta, CFO of TeraPlast Group.
The Steel division, which consists of TeraSteel Romania, TeraSteel Serbia and Depaco, had sales of over RON483 million in 2018, up 181% on the year, and its EBITDA grew 120%, to RON41.3 million.
TeraSteel Serbia opened at the end of 2017 and is the first Romanian-owned factory to open abroad after 1990. Besides an initial investment of EUR6.5 million, TeraPlast Group invested over EUR1 million in 2018 in its self-supporting trapezoidal sheet line and its mineral wool module in Serbia. TeraSteel Romania and TeraSteel Serbia sold more than 3.1 million square meters of thermal insulating panels in 2018, the company said.
Depaco, through the Wetterbest brand, one of the main producers of roofing systems in Romania, sold more than 5 million square meters of metal roof tiles. Wetterbest is currently undergoing a project of EUR5.2 million, financed through a state aid program, as well as EUR3.3 million in private company funds. The project entails the creation of a new production unit, in a new location, with an annual roof tiles and profiles production capacity of over 10 million square meters.
The Plastics division, which includes the Installations, Profiles, Granules, Door and Window Production and PVC Recycling business lines, posted sales of RON321.5 million in 2018 and an EBITDA of RON24 million.
TeraPlast SA and TeraGlass are both the beneficiaries of state grants, with projects totaling EUR9.7 million underway to increase production capacity.
In 2018 TeraPlast SA produced more than 13,700 km of pipes, more than 6,900 km of PVC profiles. TeraGlass, the company that owns TeraPlast Group’s windows and doors portfolio, produced a total of 123,000 doors and windows, at 90% of its production capacity.
For 2019 TeraPlast Group aims to increase its market share and regional coverage, through continued development of its production capacities, the optimization of its product portfolio and the expansion of its distribution network.